TACOMA, Clean., Jan. 29, 2021 /PRNewswire/ — On January 29, 2021, Northwest Hardwoods, Inc. and certain of its affiliates (collectively, “NWH” or the “Company”) declared that it experienced done its monetary restructuring approach and emerged from Chapter 11. Via restructuring, NWH has substantially reduced its long-time period debt obligations by virtually $270m and considerably reduced its financial debt service obligations. For that reason, the Enterprise retains a potent position to re-devote in long-time period advancement and proceed to give market-top high-quality and service to its shoppers.
For the duration of the restructuring system, the Company’s functions continued without the need of interruption. Personnel, suppliers, suppliers, agreement counterparties and other trade creditors had been paid in full and in the regular program of business enterprise or had been in any other case unimpaired.
“This is an essential milestone for Northwest Hardwoods and marks the starting of a new and enjoyable period for the corporation,” said CEO Nathan Jeppson. “The effective completion of this restructuring procedure has permitted us to appreciably lessen our value framework and positions us to devote meaningfully in our very long-expression progress. Today’s news assists us advance our mission to unleash the opportunity of the most environmentally seem hardwood solutions across the world.”
NWH’s money restructuring is the products of intensive and collaborative conversations amongst NWH and its vital prepetition stakeholders. Pursuant to the Company’s “pre-packaged” chapter 11 plan, its ~$379 million of secured notes had been converted into $110 million of secured exit takeback phrase financial loans and 99% of the equity in reorganized NWH (matter to dilution). The remainder of the reorganized equity is reserved for the Company’s present equity holders in exchange for their assist all through the process. In addition, the Enterprise has entered into a new ABL credit score settlement with Financial institution of The united states and Wells Fargo, making certain that the Company will continue on to have prepared accessibility to a sturdy doing work capital facility.
The advert hoc team of holders of the company’s prepetition secured notes (the “Ad Hoc Group”), encompassing in excess of 90% of the company’s secured notes, has also expressed its fulfillment with the completion of the restructuring method. Expressing its support, the Ad Hoc Team stated “Today’s information is welcome for all of Northwest Hardwoods stakeholders and buyers. We believe strongly in the lengthy-term development of Northwest Hardwoods, its incredible workforce and the toughness of its administration staff. We appear forward to a successful upcoming for Northwest Hardwoods”.
Gibson, Dunn & Crutcher LLP and Young Conaway Stargatt & Taylor, LLP served as lawful counsel to NWH and Huron Consulting Group served as financial advisor. The advertisement hoc group was represented by Willkie Farr & Gallagher LLP and Pachulski Stang Ziehl & Jones LLP, as legal counsel and Guggenheim Securities, LLC as financial advisor. This push launch does not represent an provide to sell or a solicitation of an give to purchase any securities.
NWH is the greatest United States producer of North American hardwood lumber dependent on sawmill capability, with a recent approximated yearly hardwood lumber capacity of about 320 million board feet. Its North America functions include things like 20 amenities that deliver over 20 species of domestic hardwoods. The Enterprise serves extra than 2,000 active prospects across in excess of 60 nations around the world.
Resource Northwest Hardwoods